Benefits Of A Progressive Tax Breaks

996 Words Apr 29th, 2016 4 Pages
The fact of life, is that money is needed to live in this day in age. It is used from buying a simple carton of eggs to running basic government operations. . Over the years government spending has increased from 10 percent of the GDP (gross domestic product) in 1929 to 34 percent of the GDP in 2015. To be able to spend money of this gratitude, people are required to pay taxes. Two categories of taxes progressive and regressive, which defines how much a person pays. A progressive tax requires high-income groups to pay a larger percentage than low-income groups. Regressive taxes require low-income groups to pay a larger percentage than high-income groups. There are many different types of taxes such as property taxes, state sales taxes, selective sales taxes, state income tax, and corporate taxes. Some states such as Louisiana has to have cutbacks because of a gap in the state budget which can be partially accredited to tax breaks, so they take revenue from places like university funding, and healthcare. Louisiana businesses are a major key when it comes to getting funding from taxes, but lately they have been experiencing a little trouble. The state has paid out $210 million more on tax credits and rebates to corporations up to this point in the year 2016. The problem comes in where it cost the state more than what its taking in, costing the state $1.08 billion in 2014, up from $207 million in 2004. According to Kimberly Robinson, the Edwards Administrations Secretary of…

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